Schedule of cash payments for a service company Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $123,700 April 117,500 Мay 106,900 Depreciation, insurance, and property taxes represent $27,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 72% of the remainder of the expenses are expected to be paid in the month in which they are incurred with the balance to be paid in the following month. Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May. Horizon Financial Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March Аpril Мay March expenses: Paid in March Paid in April April expenses: Paid in April Paid in May May expenses: Paid in May Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March April May March expenses: Paid in March Paid in April April expenses: Paid in April Paid in May May expenses: Paid in May Total cash payments
Schedule of cash payments for a service company Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $123,700 April 117,500 Мay 106,900 Depreciation, insurance, and property taxes represent $27,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 72% of the remainder of the expenses are expected to be paid in the month in which they are incurred with the balance to be paid in the following month. Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May. Horizon Financial Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March Аpril Мay March expenses: Paid in March Paid in April April expenses: Paid in April Paid in May May expenses: Paid in May Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March April May March expenses: Paid in March Paid in April April expenses: Paid in April Paid in May May expenses: Paid in May Total cash payments
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Schedule of cash payments for a service company
Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as
follows:
March
$123,700
April
117,500
Мay
106,900
Depreciation, insurance, and property taxes represent $27,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28,
and property taxes for the year will be paid in June. 72% of the remainder of the expenses are expected to be paid in the month in which they are incurred
with the balance to be paid in the following month.
Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May.
Horizon Financial Inc.
Schedule of Cash Payments for Selling and Administrative Expenses
For the Three Months Ending May 31
March
Аpril
Мay
March expenses:
Paid in March
Paid in April
April expenses:
Paid in April
Paid in May
May expenses:
Paid in May
Transcribed Image Text:Schedule of Cash Payments for Selling and Administrative Expenses
For the Three Months Ending May 31
March
April
May
March expenses:
Paid in March
Paid in April
April expenses:
Paid in April
Paid in May
May expenses:
Paid in May
Total cash payments
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